A flexible reference voltage circuit includes a circuit for producing a first digital signal representative of a range of reference voltage levels; a circuit for producing a second digital signal representative of a selected reference voltage level within the range of reference voltage levels; an adder for adding the first and second digital signals to produce a third digital signal; and a digital to analog converter for providing an output voltage in response to the third digital signal. The method of producing a flexible reference voltage performed by the circuit is also claimed. The invention can be used with a differential protection circuit to provide a series of trip level ranges, with a series of selectable trip levels in each range. This is accomplished in a high accuracy circuit which is relatively simple to construct, thereby minimizing size and complexity of the current sensor module, in differential protection applications, or the circuitry, if used in a power system controller. Standard digital logic components can be used to perform the necessary range/level decoding.